MARKET > NEWS

Rubber Market Ends Lower Amid Regional Futures Downtrend

04/11/2024 05:56 PM

By Danni Haizal Danial Donald

KUALA LUMPUR, Nov 4 (Bernama) -- The Kuala Lumpur rubber market ended lower on Monday, following the downtrend in the regional rubber futures market and the strengthening of the ringgit against the United States (US) dollar, a dealer said.

She said the market also reacted negatively to the International Monetary Fund’s (IMF) warning of rising risks to Asia's economy, weak US data, and the ongoing Middle East conflict.

“Nevertheless, further losses were capped by gains in crude oil prices and supply disruption due to adverse weather conditions in Thailand,” the dealer told Bernama.

She said the IMF warned that risks to Asia’s economy have increased from escalating trade tensions, China's property sector woes and the potential for further market turbulence.

“It was reported that the US manufacturing activity slumped to a 15-month low in October and factories faced higher prices for inputs,” she said.

According to the Institute for Supply Management (ISM), the US manufacturing purchasing managers’ index (PMI) fell to 46.5 last month, the lowest level since July 2023, from 47.2 in September.

She noted that oil prices rose sharply today after the Organization of the Petroleum Exporting Countries Plus (OPEC+) delayed a planned output hike in December by at least a month, citing recent pressure on prices from weak demand.

“OPEC and allies, which include Russia, said on Sunday they will delay a planned output hike of 180,000 barrels per day by at least a month,” she added.

At 5pm, Brent crude oil prices increased by 2.37 per cent to US$74.83 per barrel.

According to the Malaysian Rubber Board, the price of Standard Malaysian Rubber 20 (SMR 20) declined by eight sen to 854.5 sen per kilogramme (kg), while latex in bulk fell by six sen to 720.5 per kg.

At 5 pm, SMR 20 stood at 861.5 sen per kg, while latex in bulk was at 715.5 sen per kg.

-- BERNAMA

 

 


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